Terms Used In South Carolina Code 39-65-40

  • Principal: means a person who:

    (a) manufactures, produces, imports, or distributes a tangible product for wholesale;

    (b) contracts with a sales representative to solicit orders for the product; and

    (c) compensates the sales representative, in whole or in part, by commission. See South Carolina Code 39-65-10
  • Sales representative: means a person who:

    (a) contracts with a principal to solicit wholesale orders;

    (b) is compensated, in whole or in part, by commission;

    (c) does not place orders or purchase for his own account or for resale; and

    (d) does not sell or take orders for the sale of products to the ultimate consumer. See South Carolina Code 39-65-10
Where the court determines that an action brought by a sales representative against a principal under this chapter is frivolous, the sales representative is liable to the principal for attorney’s fees actually and reasonably incurred by the principal in defending the action and court costs.
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